Light entrepreneurship, what does that mean? Light entrepreneurship is a nifty form of self-employment. A light entrepreneur works in the same way as an entrepreneur, but does not need his own company, but can employ himself without a business ID and spinning papers. Invoices go to the light entrepreneur's customer through an invoicing service such as Truster.
Light entrepreneur is not yet an official term. In many cases, light entrepreneurship is described as an intermediate form of entrepreneurship and wage earners. However, a new way of working has already found its established place in Finnish working life. It is estimated that there are already hundreds of thousands of light entrepreneurs in Finland, and the popularity continues to grow.
How is a light entrepreneur different from an entrepreneur?
There may be almost no differences in the working life of light entrepreneurs and entrepreneurs. Both are likely to have the entrepreneur's active attitude to life, whether the work is full-time or part-time. The difference, of course, is that a light entrepreneur does not have to worry about paperwork, taxes and obligations. A light entrepreneur does not invoice their customer in their own name, but through an invoicing service.
From the point of view of the authorities, the most significant difference is that the light entrepreneur does not have a business ID or his own company. A light entrepreneur will not be able to benefit from the entrepreneur's tax deductions. That's why, as invoicing grows, you should consider starting a business.
Is a light entrepreneur in an employment relationship?
Officially, you can think that a light entrepreneur is employed with the invoicing service because the invoicing service pays the light entrepreneur's salary. Light entrepreneurs also pay taxes in the same way as an employee. In reality, however, a light entrepreneur lives, thinks and works like an entrepreneur. The authorities may also make the interpretation that a light entrepreneur is an entrepreneur – especially if he works full-time.
Who and what kind of situations is light entrepreneurship suitable for?
Anyone! You just have to have a touch of entrepreneurial spirit. Perhaps you want to test whether there is a demand for your business idea, start a business already during your studies, get a little extra money in addition to a day job, or otherwise try only the entrepreneur's lifestyle.
Starting doesn't require anything from you, and the risks are non-existent. Continue as a light entrepreneur for as long as there is interest, and stop when you feel like it. That's why light entrepreneurship is such a light and flexible way to employ yourself.
How do I know if I should become an entrepreneur or a light entrepreneur?
Light entrepreneurship is best suited for selling services, and for fairly small-scale or occasional work. If you plan to employ yourself longer and full-time, at some point it may be smart to start your own business. Light entrepreneurship is also not suitable for selling goods or running licensed industries such as restaurants. Note, however, that through Truster you can charge a wide range of healthcare jobs.
How can you become a light entrepreneur?
Very easily. Just sign up into Truster invoicing service for light entrepreneurs. Unlike when setting up a business, starting light entrepreneurship does not involve establishment costs, red tape or filling out forms. You skip boring and laborious things, and you can immediately start getting customers and starting to work. When the job is complete, you will only bill your customer through our easy-to-use mobile app.
Do I need a business ID?
No, you don't! That's why we're here for you. After you finish the job, you bill your customer through the billing service. We, on the other hand, will pay you your wages. In a way, you're working with us, but you have complete freedom to decide on your own work and schedules. That's a pretty good deal, isn't it?
Please note that without a business ID, however, you cannot make tax deductions for your purchases. If there is more business activity, it may be more profitable to become an entrepreneur.
How does an invoicing service work?
The idea behind an invoicing service is that the invoicing service receives a reward for passing invoices to its light entrepreneurs' customers and taking care of the obligations of light entrepreneurs. Many invoicing services take a certain percentage of a light entrepreneur's salary as a reward.
First, try Truster at just the price of 3.99 % service fee. So you only pay the service fee when you send an invoice for the work you do. If you're off to a roll and light entrepreneurship suits you, you should definitely switch to Truster's monthly plan. You only pay a monthly fee, nothing else.
The upsides of light entrepreneurship in a nutshell
As a light entrepreneur, you don't need start-up capital, a business ID or your own business, and you don't need to apply for a job or sign an employment contract. You can easily sell your own expertise or see if your wings carry as an entrepreneur. You can well work as a light entrepreneur even if only part-time.
You avoid paperwork, and you don't have to worry about independent payment of taxes or other obligations. You don't commit to anything, fixed costs are minimal, and there are virtually no risks. You can easily get to work without the laborious aspects of starting a business or entering into an employment relationship.